The U.S. Environmental Protection Agency has announced it will rescind its policy targeting methane leaks from oil and gas operations, according to reporting from KSLM Radio.

What exactly is being rescinded?

The EPA's move withdraws the federal methane waste-emission charge, the per-tonne fee that applied to qualifying petroleum and natural-gas systems above statutory thresholds. The charge was authorized under the Inflation Reduction Act of 2022 and finalized as an emissions-reporting rule tied to greenhouse-gas reporting for affected upstream and midstream operators.

In its place, EPA has signaled a narrower compliance pathway. Operators that previously submitted Waste Emissions Charge reports to the Greenhouse Gas Reporting Program will see that filing obligation pulled back as the underlying rule is unwound.

Which facilities are affected?

Reporting covered onshore and offshore production, processing, transmission, compression, and storage segments that exceed the threshold defined under the IRA framework. A typical large upstream operator with pneumatic devices, gas-driven controllers, and tank venting was in scope, alongside midstream compressor stations on the gathering and transmission network.

Why is EPA withdrawing the rule?

EPA Administrator Lee Zeldin framed the action as part of a broader deregulatory push under President Donald Trump's second term. The agency has cited the rule's compliance cost and overlap with state-level programs as grounds for repeal. Zeldin has directed staff to re-examine roughly 30 rules interpreted as carrying regulatory burden on the energy sector, of which the methane waste-emission charge is one of the highest-profile items.

How does this change the operator accounting picture?

Companies that have booked accruals in anticipation of the fee will revisit their calculations. Waste-management compliance budgets set against per-tonne methane charges now shift toward voluntary methane abatement programs, LDAR (leak detection and repair) investments, and third-party-verified intensity targets used in offtake contracts with LNG buyers and pipeline customers.

What about state-level methane rules?

Subnational rules in Colorado, New Mexico, and California remain unaffected by EPA's withdrawal. Operators active in those jurisdictions will continue to file under state equivalents, meaning methane monitoring, third-party verification, and LDAR frequency remain compliance obligations regardless of federal status.

What happens next

EPA must publish a proposed rescission in the Federal Register and run a public-comment period before the rule can be formally withdrawn. Industry counsel will watch for the docket number and comment window. Litigation risk remains if environmental groups challenge the withdrawal on administrative-procedure grounds. The next operational milestone for affected operators is the Federal Register publication date and any revised GHG Reporting Program instructions issued by EPA's Office of Atmospheric Programs.